Breaking Down the Deal - Real Estate Investing with Grant Cardone

Hey Uncle G! I might've missed something here, but the 375k lender said that the interest is 7% a month (based on the sheet of paper you read), but it seems you're calculating it annually. If that's the case (7%/month), then it's 26,250 x 12 = 315k a year on the DP alone and Justin's going to be in the red if his NOI is 137,600.

I'd appreciate it if you shed light on this a little. I'm still learning. :)

At 24:00 Hell yes you would do this deal. Keep it coming GC. Got me thinking differently my brother.

Uncle G. Never factor in the expenses.

what happen if you cant rent the whole things ? you will be F*&%ed. please tell me how you would deal with that case if you cant rent the whole thing and now you need to pay the lenders ? I am talking about the first deal at 8:00

Grant! Do you think i have a real disadvantage because i am not an older white man? Sounds like a stupid question but i feel like being a 27 year old mexican 5'10", 160lb, brown guy, i just feel like people dont trust me right off the bat. Do you think this is a real issue and at what part of the prosses would this affect me negatively?

How much should you expect a bank to loan you?

I've seen GC briefly talk about the book, How To Build A Real Estate Empire for those looking for a good real estate book to read....

Im 19. 0 money college student. how do I start?

What happens if you can´t pay the guaranteed 7% to the investors?

Uncle G!! how are you? I have read your 10x book, thanks!! please consider answering questions below

the 137600 would technically be at 9.17% CAP. which includes after taxes and insurance. did a google search and it looks like the average yearly tax rate per unit is $3k/yearly x16units 48K. so if loopnet estimates $1000/monthrent x12 x 16units 192000 gross. that leaves us with 6400 which would be yearly insurance cost which seems low.. What about the management fee? so from that 77000 you have to deduct $15360 @8%fee. so now we are down to 62340. this numbers are considering 42000/year interest only if you if you get 5 or 10 year interest only @3.734 amortized over 20 years, as well as the 18000/interest only amortized over 30 years.

then second break down i understand is from showing total cost principal and interest

but lets say bank loaned 1125000 @4.125 $5,452 P&I and your investor(s) agreed to amortize 30 year note of 7% on 375K $2495/month. so both monthly payments would be $7947/monthx12=95,364
so now we take 137600 less 95364 = 42,236 NOW less $10236 management fee 5.3% of 192k gross rents?! or is it that you are going to give someone a no cost apartment to live in to manage all 15 units?

Questions for Uncle G
1. How do you structure agreements with investor(s. i know that the "what if" kills dreams, but being a realist, how do you keep an investor from asking you to give back principal in case you don't have money, well unless you sell building that would resolve it. Let me word it better.

Scenario 1. Investor in year 2 asks: Jhonatan, i need the money i loaned you. how soon can you get me my 375k
Scenario 2. say there are several investors and One of the investors ask: Jhonatan, i need the money back i lent you. how soon can you get my 125K back?

2. What is the average cost to close on a 16 unit apartment complex? from origination fees/title/attorney/partnership agreements, all related inspections?

3. Confirm in this scenario that management is done by someone living in one of units.
4. How many months of reserves are bank looking from borrower?
5. Also what kind of cash reserves is safe to have if something breaks?

I'm a 21 year old college student its 12:30 am got my home work done and now everyone is sleeping and I'm learning- Thank You Grant

what about Columbia Maryland

love investments.....

REI with GC is my favorite GC series yet! Thanks, Unc for dropping the knowledge!

My husband has been investing for 15 years, primarily buying and holding single family with a few multifamily properties (lost most of those in the GR). More recently, we've done some lease purchases. We're in a new area now and haven't done any deals here. We want to focus on multifamily, but don't have any real money or family/connections to fund deals. So, my question is where should we start? Networking at the local REIA?

I'm watching the show from the bathroom but I definitely subscribed.

But what about the mortgage? we have the interest on both loans considered, Which is about $71,250. and the NOI is $137,600. So the property produces $66,350 after the interest is payed. But what about the mortgage? why isn't the mortgage considered? the other part of the mortgage, not just the interest on the mortgage loan?

Thank you for taking the time Grant to go over this information. Very helpful.

I sent a deal from sweden to Ryan can you please GP thorught it on the show

Mr. GC, what formula do you use in order to check if a property is a good deal? Also, what's the best way to raise capital?

Breaking Down the Deal - Real Estate Investing with Grant Cardone

Comments

Additional Information: